Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has achieved revenue growth of 9.7% year-on-year in the first half of 2024, with total revenue reaching 1.14 billion RMB [2][3] - Adjusted net profit for the same period is 130 million RMB, reflecting a slight increase of 0.5% year-on-year, with an adjusted net profit margin of 11.6% [2][3] - The company is expanding its "Double Beauty + Double Health" model, which is expected to enhance its market position and customer base [6] Financial Performance - The company's revenue breakdown shows that beauty and health services generated 620 million RMB, up 13.6% year-on-year, accounting for 54.7% of total revenue [3] - Medical beauty services contributed 440 million RMB, a modest increase of 0.3%, while sub-health medical services surged by 50% to 70 million RMB [3] - The gross profit margin improved to 47.0%, an increase of 0.9 percentage points compared to the previous year [2][3] Market Position and Strategy - The company has successfully integrated the acquisition of the leading smart beauty brand, Nairui'er, which is expected to significantly enhance its market share [6] - As of mid-2024, the company operates over 409 stores, with 202 being direct-operated and 207 franchised [6] - The report forecasts revenue growth for 2024-2026 at 22%, 24%, and 14% respectively, with net profit growth of 12%, 25%, and 12% [6][8]

Investment Rating - The report maintains a "Recommend" rating for Beautiful Land Medical Health (2373 HK) [1] Core Views - Beautiful Land Medical Health achieved revenue of RMB 1 138 billion in H1 2024 a YoY increase of 9 7 with a gross margin of 47 0 up 0 84 pct YoY and adjusted net profit of RMB 132 million a YoY increase of 0 5 [1] - The company's beauty and wellness business showed steady growth with revenue of RMB 622 million in H1 2024 a YoY increase of 13 6 while the sub-health business revenue surged by 50 0 to RMB 74 million [1] - The company completed the acquisition of Nai Rui Er expanding its total number of stores to over 550 and upgrading its business model from "Three Beauty" to "Double Beauty + Double Health" [1] Financial Performance - Revenue for 2024E is projected at RMB 2 605 billion a YoY increase of 21 4 with net profit attributable to the parent company expected to reach RMB 238 million a YoY increase of 10 2 [1][2] - The company's gross margin for H1 2024 was 46 95 a YoY increase of 0 84 pct while the net margin was 11 08 a YoY decrease of 0 60 pct [1] - The EPS for 2024E is forecasted at RMB 1 01 with a P E ratio of 15x [2] Business Segments - Beauty and wellness services contributed RMB 622 million in H1 2024 with direct-operated stores generating RMB 564 million a YoY increase of 11 2 and franchise stores contributing RMB 58 million a YoY increase of 43 8 [1] - Medical beauty services revenue was RMB 441 million in H1 2024 a slight YoY increase of 0 3 with active members increasing by 12 1 to 19 000 [1] - Sub-health services revenue reached RMB 74 million in H1 2024 a YoY increase of 50 0 with per capita spending of active members increasing by RMB 2 835 to RMB 15 000 [1] Store Expansion - As of H1 2024 the company had a total of 409 stores including 376 beauty and wellness stores 24 medical beauty stores and 9 sub-health stores [1] - The acquisition of Nai Rui Er added 150 stores bringing the total number of stores to over 550 [1] Strategic Initiatives - The company strategically expanded its health product SKUs and partnered with French LPG to launch the LPG® BF+ program [1] - The acquisition of Nai Rui Er is expected to enhance the company's market coverage brand influence and operational efficiency through economies of scale [1] Financial Projections - Revenue for 2025E is projected at RMB 3 128 billion a YoY increase of 20 1 with net profit attributable to the parent company expected to reach RMB 285 million a YoY increase of 20 0 [2] - Revenue for 2026E is projected at RMB 3 576 billion a YoY increase of 14 3 with net profit attributable to the parent company expected to reach RMB 330 million a YoY increase of 15 8 [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][7] Core Views - The company demonstrated revenue and profit growth in the first half of 2024, with revenue reaching 1.138 billion yuan, a year-on-year increase of 9.7%, and net profit attributable to shareholders of 115 million yuan, up 3.2% year-on-year [3][4] - The company's business model shows strong synergy, particularly in the beauty and health sectors, with significant growth in sub-segments such as sub-health management services, which grew by 50% year-on-year [4][5] - The company is expanding its market presence through both organic growth and acquisitions, enhancing operational efficiency through digital marketing tools [7] Revenue Performance - The company's revenue for 1H2024 was 1.138 billion yuan, with a year-on-year growth of 9.7% [3] - The adjusted net profit for the same period was 1.32 billion yuan, reflecting a 0.5% increase year-on-year [3] - Revenue breakdown by business segments shows beauty and health services at 620 million yuan, medical beauty services at 440 million yuan, and sub-health medical services at 70 million yuan, with respective year-on-year growth rates of 13.6%, 0.3%, and 50.0% [4] Operational Efficiency - The company reported an increase in gross margin to 47.0%, up 0.9 percentage points year-on-year, while the net profit margin slightly decreased to 10.1%, down 0.6 percentage points [4][5] - The gross margins for the beauty and health, medical beauty, and sub-health business segments were 40.3%, 55.1%, and 54.4%, respectively, with notable improvements in the sub-health segment [5] Market Data - The total market capitalization of the company is 3.754 billion HKD, with a total share count of 236 million shares [3] - The stock price has fluctuated between 9.11 and 17.50 HKD over the past year [3] Financial Forecast - The company is projected to achieve revenues of 2.596 billion yuan in 2024, with a growth rate of 21.03%, and net profit of 250 million yuan, reflecting a growth rate of 15.91% [8][9] - The earnings per share (EPS) are expected to be 1.06 yuan in 2024, with a price-to-earnings (P/E) ratio of 14 [8][12]

Investment Rating - The report maintains a "Buy-A" investment rating for the company with a 6-month target price of HKD 17.37 [5][8]. Core Insights - The company achieved a revenue of RMB 1.138 billion in the first half of 2024, representing a year-on-year increase of 9.7%, and a net profit of RMB 115 million, up by 2.7% [1]. - The company is expanding its market presence through the acquisition of a 70% stake in the second-largest beauty brand, Nairui'er, which is expected to enhance its market share and brand synergy [4][8]. - The company has transitioned to a "dual beauty + dual health" business model, focusing on both beauty and health services [4]. Financial Performance - In the first half of 2024, the company's gross profit margin improved to 47.0%, an increase of 0.9 percentage points, driven by a higher proportion of high-margin businesses [2]. - The adjusted net profit for the first half of 2024 was RMB 132 million, reflecting a modest increase of 0.5% [1]. - Cash and cash-equivalent assets rose significantly by 137.1% to RMB 196 million [1]. Membership and Store Expansion - The number of active direct members reached 81,500, a growth of 10.3%, while the average annual spending per member decreased by 2.1% to RMB 12,600 [3]. - The total number of stores increased to 409, with a net addition of 14 stores in the first half of 2024 [3]. Business Segmentation - Revenue from beauty and health services was RMB 622 million, up 13.6%, accounting for 54.7% of total revenue, with a gross margin of 40.3% [4]. - Medical beauty services generated RMB 441 million, representing a slight increase of 0.33%, while health assessment and intervention services saw a significant growth of 50.0% to RMB 74 million [4].

Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of RMB 1,137,694 thousand, representing a year-on-year increase of 9.7% compared to RMB 1,036,870 thousand in 2023[3]. - Adjusted net profit for the period was RMB 131,837 thousand, with an adjusted net profit margin of 11.6%[3]. - The company's revenue increased by 9.7% from RMB 1,036.9 million in the first half of 2023 to RMB 1,137.7 million in the first half of 2024[20]. - The profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 115,421,000, compared to RMB 111,830,000 for the same period in 2023, representing a growth of approximately 2.5%[70]. - Total comprehensive income for the period was RMB 129,729 thousand, down 17.4% from RMB 157,009 thousand in the prior year[46]. Revenue Breakdown - Revenue for beauty and wellness services reached RMB 622 million in H1 2024, a year-on-year increase of 13.6%[10]. - Revenue from beauty and wellness services amounted to RMB 622,418,000, up from RMB 547,705,000, with a notable increase in service revenue from RMB 472,987,000 to RMB 533,986,000[57]. - Medical beauty services generated RMB 441,327,000 in revenue, slightly up from RMB 439,869,000, while sub-health medical services increased significantly from RMB 49,296,000 to RMB 73,949,000[57]. - Revenue from franchise and other beauty and wellness services surged by 43.8%, from RMB 40.4 million to RMB 58.0 million, driven by network expansion and new equipment launches[23]. - Revenue from sub-health medical services grew by 50.0%, from RMB 49.3 million to RMB 73.9 million, primarily due to rapid growth in women's specialty centers[25]. Member and Customer Metrics - The number of active members served by direct-operated stores increased to 81,531, up 10.3% from 73,919 in the same period last year[3]. - The total customer traffic for direct-operated stores reached 684,659, reflecting an 11.6% increase from 613,668 in the previous year[3]. - The average spending per active member was RMB 12,608, slightly down from RMB 12,882 in the same period last year[6]. - The number of active members served increased to 78,868, up 9.9% compared to the same period last year[12]. - The average spending per active member was RMB 6,771, slightly up from RMB 6,693 in the previous year[12]. Operational Efficiency and Growth Strategy - The company aims to optimize single-store operational efficiency and expand revenue in direct-operated cities as part of its growth strategy[19]. - The company plans to integrate all 150 Nairier stores into its brand matrix by September 1, 2024, significantly increasing market share in the Greater Bay Area[4]. - The company plans to open 150 new direct and franchise stores following the acquisition of Nairui, enhancing market share in the Greater Bay Area[10]. - The company is focused on expanding its direct-operated and franchise business while upgrading medical beauty and sub-health service locations[19]. - The company anticipates that 2024 will be a pivotal year for mergers and acquisitions in the beauty industry, focusing on expanding its core city member base[5]. Acquisition and Partnerships - The company announced the acquisition of 70% of the core assets of Guangzhou Nairier Health Management Co., Ltd. for RMB 350 million, enhancing its market position in the health sector[4]. - The company completed the acquisition of 70% equity in Guangzhou Nairu Health Management Co., Ltd. for RMB 350.0 million, with 75% of the payment already made by June 30, 2024[40][43]. - The company has entered a strategic partnership with LPG to enhance its product offerings in the health and beauty sector[11]. - The company plans to actively pursue potential acquisition opportunities to enhance brand influence and industry leadership[18]. Financial Position and Cash Flow - Cash and cash equivalents amounted to RMB 196.0 million, with time deposits over three months totaling RMB 486.1 million as of June 30, 2024[35]. - The net cash generated from operating activities was RMB 222.4 million, a slight increase from RMB 222.3 million in the same period of 2023[36]. - The net cash used in investing activities for the first half of 2024 was RMB 195.9 million, primarily due to the acquisition payment of RMB 105.0 million for Nairu Health Technology and RMB 87.8 million for purchasing non-current assets[36]. - The total assets increased to RMB 3,409,708 thousand as of June 30, 2024, compared to RMB 3,302,006 thousand at the end of 2023, reflecting a growth of 3.2%[47]. - The company's equity attributable to owners increased to RMB 829,498 thousand from RMB 801,896 thousand, reflecting a growth of 3.4%[47]. Corporate Governance and Compliance - The audit committee, including one non-executive director and two independent non-executive directors, reviewed the interim financial statements and confirmed compliance with applicable accounting standards[86]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[85]. - The company has adopted the standard code for securities trading by directors and senior management, confirming compliance during the reporting period[85]. - The company will continue to review and improve its corporate governance practices to ensure adherence to the corporate governance code[85]. Research and Development - The company is focused on research and development to meet the evolving needs of customers throughout their lifecycle[92]. - The newly upgraded TimeSo "Differentiated Aesthetics" system was launched, marking a significant milestone in product innovation[14]. - The company has established a strong team of 60 experts in comprehensive minimally invasive procedures and dermatology[14]. Market Trends and Insights - The number of medical beauty service institutions in China reached 19,880, a 28% year-on-year increase, indicating a growing market[13]. - The women's health center has seen over 200% revenue growth, indicating strong market demand and customer loyalty[16]. - The company has a unique business model developed over 30 years, leveraging a nationwide beauty and health network to attract quality customers[90]. Shareholder Returns - The declared dividends for the six months ended June 30, 2024, amounted to RMB 105,161,000, up from RMB 84,009,000 in the previous year, reflecting a growth of approximately 25.1%[71]. - The company repurchased a total of 865,500 shares at a total cost of RMB 12,012,000, with 255,500 shares canceled on August 31, 2023, and 610,000 shares canceled on February 21, 2024[68].

Investment in CITIC Bank - As of December 31, 2023, the fair value of the investment in CITIC Bank's financial products was approximately RMB 190 million, representing 5.78% of the total assets of the company[3]. - The actual return rate from CITIC Bank's financial products ranged from 2.3% to 2.8% for the fiscal year ending December 31, 2023[5]. - The risk level of CITIC Bank's financial products is classified as "PR1," indicating the lowest risk level among similar products offered by CITIC Bank[5]. - The company has no other significant financial investments as of December 31, 2023, maintaining the information disclosed in the 2023 annual report[5]. - The investment strategy in CITIC Bank's financial products is aimed at achieving better returns compared to idle funds earning standard bank interest[5].

Company Overview - Beauty Farm Medical and Health Industry Inc. successfully listed on the Main Board of the Hong Kong Stock Exchange in January 2023, marking a significant milestone as the first public company in China's beauty industry utilizing the dual-beauty business model[8]. - The company celebrated its 30th anniversary in 2023, reflecting on its journey and commitment to becoming a century-old beauty brand[8]. - The company has expanded its operations from a single store in Haikou to over 400 stores nationwide, serving customers over one million times in 2023, primarily targeting women[12]. - The company has built a diverse business matrix catering to mid-to-high-end female customers in China's high-tier cities, enhancing its brand presence and market reach[12]. Financial Performance - In 2023, the company achieved a net income of RMB 230 million, representing a year-over-year increase of 108.2%[17]. - Revenue for 2023 reached RMB 2,145,068, an increase of 31.1% from RMB 1,635,414 in 2022[29]. - Gross profit for 2023 was RMB 977,102, representing a gross profit margin of 45.6%, up from 43.9% in 2022[29]. - Net profit for 2023 increased to RMB 230,139, with a net profit margin of 10.7%, compared to 6.8% in 2022[29]. - Adjusted net profit for 2023 was RMB 241,039, with an adjusted net profit margin of 11.2%, up from 9.6% in 2022[30]. - The company generated net cash from operating activities of RMB 626 million in 2023, an increase of 64% year-over-year[17]. - As of December 31, 2023, the company's cash and cash-like items amounted to RMB 1.57 billion[17]. Business Model and Strategy - The dual-beauty business model was recognized as the inaugural year in 2023, showcasing the company's resilience through the challenges posed by the pandemic and macroeconomic environment[10]. - Beauty Farm aims to achieve long-term, high dividends for shareholders while driving progress through internal growth and external acquisition initiatives[11]. - The company upgraded its traditional beauty services to beauty and wellness services in 2023, marking a strategic expansion into the wellness sector[14]. - The company aims to enhance customer lifetime value through a diversified growth matrix business model[14]. - Mergers and acquisitions were emphasized as a primary strategy for growth, including a strategic investment in Chengdu Youlan and an acquisition of Hangzhou Yanspa[67]. Market Position and Growth - The beauty and wellness industry is experiencing a booming demand, with the company positioned to seize opportunities in this growing market[7]. - The company maintains a strong brand moat amidst rising user traffic costs, ensuring competitive advantage in the industry[10]. - The company aims to continue leading industry development while creating social value as it celebrates its 30th anniversary[26]. - The Group anticipates continuous growth in customer demand for beauty and wellness solutions, indicating significant industry potential[71]. Customer Engagement and Services - The company successfully converted 25% of its beauty and wellness members into aesthetic medical or subhealth medical members, up four percentage points year-over-year[14]. - Revenue from aesthetic medical services reached RMB 850 million, up 37.1% year-over-year[38]. - Revenue from subhealth medical services was RMB 101 million, up 47.6% year-over-year[38]. - The number of active members in aesthetic medical services reached 24,474, a 30.6% increase year-over-year, with average annual spending per member of RMB 34,597, up RMB 1,493 from 2022[55]. Corporate Governance and Management - The Company has established an Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of its affairs[172]. - The Board comprises two executive Directors, three non-executive Directors, and three independent non-executive Directors as of the date of this annual report[146]. - The Company has adopted the Model Code for securities transactions to ensure compliance with insider trading regulations[145]. - The Company will continue to review and enhance its corporate governance practices to ensure compliance with corresponding provisions[145]. Employee and Workplace Culture - The Group employed a total of 3,941 employees, with 3,722 females and 219 males, indicating a high female representation in the workforce[196]. - The total employee welfare expenses increase of approximately 22.5% from 2022 to 2023 indicates a focus on enhancing employee benefits in line with business growth[108]. - The development of female leadership is a core focus, helping female employees achieve career development and economic independence[198]. - The Group is committed to creating a fair, respectful, and inclusive working environment for all employees[198]. Environmental, Social, and Governance (ESG) - The company emphasizes its commitment to ESG principles, aiming to create value for society and promote sustainable development[20]. - The Company plans to establish an Environmental, Social, and Governance (ESG) Committee to manage ESG-related matters[152].

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Insights - The company, Meili Tianyuan Medical Health, reported a revenue of 2.145 billion yuan in 2023, representing a year-on-year growth of 31.2%. The net profit attributable to the parent company was 216 million yuan, a significant increase of 109.2%. The adjusted net profit reached 241 million yuan, up by 53.2%. The diluted EPS was 0.94 yuan, and the operating cash flow net amount was 626 million yuan, reflecting a growth of 63.9% [4][5][9]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 2.145 billion yuan, with a year-on-year increase of 31.2%. The net profit was 216 million yuan, marking a 109.2% increase. The adjusted net profit was 241 million yuan, up 53.2%. The diluted EPS was 0.94 yuan, and the operating cash flow net amount was 626 million yuan, reflecting a growth of 63.9% [4][5][7]. Business Segments - The beauty and health business generated revenue of 1.194 billion yuan, a growth of 26.1%, accounting for 55.6% of total revenue. The medical beauty business achieved 850 million yuan in revenue, up 37.1%, while the sub-health medical business reached 101 million yuan, growing by 47.6% [5][9]. Cost and Profitability - The gross margin increased by 1.7 percentage points to 45.6%, while the expense ratio decreased by 3.5 percentage points to 34.1%. The net profit margin rose by 3.8 percentage points to 10.1% [5][9]. Growth Drivers - The company has seen steady growth in new customer acquisition and repurchase rates, driven by its medical beauty services. The number of active members and customer traffic increased significantly, with a 41.5% growth in customer visits and a 30.6% rise in active members for medical beauty services [5][6]. Future Outlook - The company plans to expand its store network, having surpassed 400 stores, including 201 direct-operated and 199 franchised stores. It has also engaged in strategic acquisitions to enhance market share and service offerings [9][10]. The revenue forecast for 2024-2026 is projected to be 2.741 billion yuan, 3.391 billion yuan, and 3.774 billion yuan, respectively, with expected growth rates of 27.8%, 23.7%, and 11.3% [9][12].

Table_Title Table_BaseInfo 2024 年 3 月 29 日 公司动态 美丽田园医疗健康（2373.HK） 证券研究报告 收入利润再创新高，收购奈瑞儿巩固龙头地位 医美 2023年公司业绩再创新高，净利润翻一倍。2024年3月，公司收购中国美业第二名 投资评级： 买入 奈瑞儿，增厚公司业绩。我们认为，公司凭借成熟的“双美”模式和运营能力，不 断扩张门店网络，龙头地位稳固，故维持“买入”评级。 目标价格： 19.6 港元 报告摘要 现价(2024-3-28)： 15.46港元 收入及利润再创新高，净利润翻一倍。 2023年公司实现收入21.5亿元，同比增长31.2%，净利润为2.3亿元，同比增长 总市值(百万港元) 3,645.40 95,217.68 108.2%，经调整净利润为2.4亿元，同比增长53.2%，业绩强势的表现得益于公司品 总股本(百万股) 235.80 247.45 牌影响力、产品、服务竞争力及运营能力的提升。随着规模效应逐步显现，2023年 12个月低/高(港元) 9.4/31.9 169.5/450 经营费用率（销售、管理、研发费用总和）为34.1%，较2022年同 ...

2024年03月28日 公 司点评 公 买入 / 维持 司 美丽田园医疗健康 研 (02373) 究 目标价: 昨收盘:15.44 2023 年业绩点评：业绩亮眼，收购龙二奈瑞儿巩固市场地位 事件：公司近期公布2023年年报，2023年收入21.5亿元/同比+31%， ◼ 走势比较 净利润2.3亿元/同比+108%，经调整净利润2.4亿元/同比53%；H2收入 11亿元/同比+23%，净利润1.1亿元/同比+20%，经调整净利润1.10亿元 20% /+2.92%。业绩表现亮眼。 太 2% 客流驱动增长，双美转化率提升。收入拆分来看，1）美容和保健服 (16%)82/3/32 9/6/32 12/8/32 2/11/32 41/1/42 72/3/42 平 务收入11.9亿元/同比+26.1%，其中直营店10.8亿元/同比+29.23%，加 盟商及其他 1.14 亿元/同比+2.4%。直营到店客流人次 117.19 万/同比 洋 (34%) +32%，平均到店次数10次，直营活跃会员数量9.05万人/同比+19%，人 证 (52%) 均消费1.13万/同比+8.8%；2）医疗美容服务收入8.5亿元/同比+37 ...